Port of Oakland: Hanjin cargo ships cleared to dock

OAKLAND — Hanjin Shipping vessels return to Oakland this week for the first time since the Korean container carrier filed for bankruptcy and stopped taking cargo in late August, roiling the trade industry.

Among the first Hanjin ships to berth at U.S. ports this month after weeks of idling in the water, the Hanjin Greece is expected to berth late Wednesday afternoon at the Port of Oakland, followed by the Hanjin Boston arriving Friday, according to the port.

The ships first arrived earlier this week in Southern California after a two-week logjam. The Seoul-based firm, which is reportedly billions of dollars in debt, sought protection from creditors as crews waited offshore, and many of its ships were seized or denied access to ports around the world.

“For the sake of customers with cargo on those ships, we’re glad this day has finally come,” said Port of Oakland Executive Director Chris Lytle in a statement.  “Businesses can’t operate with products stuck at sea.”

The Hanjin Greece will unload about 450 loaded import containers in Oakland, according to the port. The Boston will unload about 64 import boxes. Terminal officials have said they will release Hanjin import containers to customers if they are paid in advance for cargo-handling.

No export or empty containers will be loaded back on the Hanjin ships arriving this week.

Many exporters are trying to find alternative shipping companies to reload outgoing cargo that was bound for Hanjin ships. That could cause shipping prices to rise, as  cargo volume — and demand for space on ships — increases.

Retailers have expressed concern over the situation.

“Retailers’ main concern is that there is millions of dollars worth of merchandise that needs to be on store shelves that could be impacted by this,” said Jonathan Gold, vice president for supply chain and customs policy at the National Retail Federation, in a company statement issued just after Hanjin filed for bankruptcy.

The Retail Industry Leaders Association urged government action to help mitigate the effects of the situation, in a letter to U.S. Secretary of Commerce Penny Pritzker and Federal Maritime Commission Chairman Mario Cordero.

The shipping industry has struggled with overcapacity prompted by an increase in shipbuilding and a slowdown in global trade.

Because shippers can turn to other cargo firms, the port said it does not expect Hanjin’s bankruptcy to dampen long-term cargo volume growth in Oakland.